To promote installation of rooftop solar by homeowners in the country, the Indian government provides attractive subsidy, also called Central Financial Assistance (CFA) Phase II, and has introduced a simplified process to apply for subsidy while installing residential rooftop grid-connected solar power plants.

The key objectives for selling solar systems at subsidized rates in India include:

  • Making solar panels affordable for homeowners
  • Popularizing the widespread use of solar power to cap carbon emissions
  • Reducing the dependence on fossil fuels

Over the pat years, subsidy schemes were driven at stat level and the amount and process was very different in each state. This led to a lot of inconsistency and confusion. Each state had different subsidy schemes, and many of the states did not have anything at all.

The National solar subsidy scheme

To simplify the subsidy application process, Ministry of New and Renewable Energy (MNRE) has launched a National Portal for Solar Residents interested in installing a new on-grid rooftop solar power system should register through this portal.

This scheme is also known as the DBT scheme – Direct Bank Transfer. Consumers can apply for a subsidy through the National Portal for Solar. The subsidy will be credited directly into the bank accounts of the customers within 30 days of the commissioning of the solar system.

Here’s how it’s different – even if your state does not offer a solar panel subsidy yet, you can still avail of the subsidy by applying for the same via the National Portal for Rooftop Solar.


1 KWUp to 3kW – ₹18,000/- per kWINR 18,000
2 KWINR 36,000
3 KWINR 54,000
4 KWAbove 3kW and up to 10kW


₹18,000/kW for the first 3kW; thereafter, ₹9,000/kW

INR 63,000
5 KWINR 72,000
6 KWINR 81,000
7 KWINR 90,000
8 KWINR 99,000
9 KWINR 108,000
10 KWINR 1,17,000
MORE THAN 10 KWINR 1,17,000 fixed



Subsidy is only available on “MADE IN INDIA” or “DCR” solar panels that are included in the almm list

Subsidy is only available for ON-GRID PROJECTS, i.e. solar projects without battery backup.

Process To Apply For Solar Rooftop Subsidy Scheme On National Portal

To install a solar power system in your home and take advantage of the subsidy benefits, follow the process below.


  1. Download the SANDES app and Search for the National Portal for Rooftop Solar option in the app.
  2. Select your respective state DISCOM and register on the National Portal.
  3. Enter your electrical connection number/consumer number, email ID, and mobile phone number from your invoice.
  4. Mobile number and email verification is done through OTP verification and email activation link.

Application for grid-connected solar rooftop system

  1. On the app, you can proceed to apply to install a grid-connected solar rooftop system in your home.
  2. You will receive an application form pre-filled with the data you entered during registration.
  3. Enter the following details in the application form:
    • Name on Utility bill
    • Home address
    • Planned rooftop system capacity
    • Sanction load
    • Existing solar power plant capacity (if any)
  4. Upload a copy of your latest electricity bill.
  5. You will receive an email confirming receipt of your application from the (SDO). You can also log in to the portal to download it.

Feasibility study and review by DISCOM

  1. The application will be transferred to the DISCOM for Site analysis.
  2. SDO will conduct a technical feasibility study within 3 business days of receipt of your application.
  3. Approval will be granted by SDO within 15 days of submission of the application. We recommend that you do not start the installation before it has been approved by DISCOM. DISCOM will notify you of approval or rejection by email.

Installation of the system

  1. After receiving the approval of the feasibility study from DISCOM, you can proceed to install the grid-connected solar rooftop system.
  2. It is mandatory to choose an installer registered with the DISCOM / MNRE portal
  3. Use a solar panel manufactured with domestically produced solar cells listed on ALMM. You must also use a BIS certified inverter.
  4. An agreement must be signed between the applicant and the installer. The agreement form can be downloaded from the National portal. The Installer must agree to service the solar power plant for at least 5 years.

Net metering

  1. After the successful installation of the rooftop solar power system, please submit the “Work completion report” and “safety certificate” to receive net metering approval. Work completion report includes wattage, solar panel brand and number of solar panels, inverter wattage, vendor name, system photo, etc. Safety certificates are to be provided by the empaneled vendor.
  2. Also, the Net Meter device must be applied for and procured from a registered company. If Net Meter is not available in the Nigam Store, please purchase a Net-meter that conforms to the specifications published by Nigam.
  3. To successfully apply net metering, please follow DISCOM instructions regarding net metering rates and net metering agreements.
  4. Net metering requests are forwarded to DISCOM.
  5. After approval by DISCOM, the SDO team will install the net meters and connect the solar rooftop system to the power grid and commission the system.


  1. After successfully commissioning the system, DISCOM will issue a “Commissioning Certificate”. You can download it from their website.
  2. Now the applicant can raise online subsidy/CFA claim request by providing applicant’s bank details along with legible copy of cancelled bank cheque or passbook, to allow the funding agency to transfer the subsidy directly to your bank account.

Hope this helped you in getting a good understanding about the process to avail subsidy. Make the best of it while government pays you.

SolarSphere is one of the leading providers of rooftop solar panel systems. Please reach out to us for a free consultation to understand the potential of your rooftop to generate electricity and start saving money today!!

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  1. […] the previous CFA structure (incentive of up to ₹18,000/kW) will be applicable. Please check here for more […]

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